Vodafone: not a silly idea for Verizon and AT&T to break it up
FT Alphaville has run what looks like a well-sourced and credible story that Verizon and AT&T are looking to break up Vodafone, with Verizon getting the Verizon Wireless portion and AT&T the...
View ArticleRotation or simple mean-reversion?
While we remain committed to the idea of owning HQG and “bond like Equities” (refer our definition) we do note some cracks appearing in what others call “Classic Defensives”. Post disappointing results...
View ArticleTelco M&A (cont..): bear hug tactics in play
This week Reuters reported that Verizon has hired advisers to prepare for a possible $100bn cash and stock bid for Vodafone’s stake in VZW. The report reads of Verizon using the media as a lobbying...
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Rotation or simple mean-reversion?
While we remain committed to the idea of owning HQG and “bond like Equities” (refer our definition) we do note some cracks appearing in what others call “Classic Defensives”. Post disappointing results...
View ArticleSell bond proxies that have outperformed, especially in Telcos and Utilities
For balance, we would be selling NO growth bond proxies. Take AT&T for example: trading on 14x P/E, above 12x trend and offers 0% growth. Several stocks in these sectors have posted solid gains in...
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US Telcos: Technicals now also say sell
Our Technical Analyst Riccardo confirms the clear technical sell. This is not a buy on the dip signal but a run for the door and sell signal. After 5 weeks of relative underperformance vs. the market...
View ArticleAT&T (aviate Sell). Failed attempt to buy growth
The Spanish press has reported the government has blocked a friendly €122bn takeover of Telefonica by AT&T. The offer was a 100% bid for Telefonica at a 30% premium. According to sources the...
View ArticleAT&T: Sprint follow TMUS success. AT&T exposed, we remain sellers
Sprint has announced a significant price cut to its unlimited wireless bundle. All you eat data, calls and text for $80 a month, from $110 previously. Then add in the deep pockets of new parent...
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Telecoms: technicals point the way. Avoid AT&T
Riccardo today reiterates the sell call on Verizon. Riccardo turned bullish on European telecoms earlier this summer at a time (as is still the case) fundamental analysts continued to avoid the group...
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M&A heating up. Time to reflect on LBO basket performance as we approach...
Whether it be cross boarder tie-ups (Applied Materials/TEL), Abenomics in action (Lixil confirm purchase of German bathroom fixture company Grohe), desperation (Blackberry) or mere talk (AT&T...
View ArticleAT&T: continue to avoid…
Last night’s results were why we continue to avoid AT&T. Its wireless business is being squeezed in the middle of by a superior network (Verizon) and resurgent lower end players (Sprint, T-Mobile)....
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2-10 Yield Curve breaking out: stock conclusions
The beneficiaries are Banks, Insurers, Cyclicals. The losers are Utilities and Telecoms. KRE is one way to express the regional banks, and we continue to sell short AT&T within the telecom sector....
View ArticleT = Toothless. AT&T remains a short
The resurgence of T-Mobile and Sprint (don’t underestimate the influence of Softbank’s Son) at the low end with Verizon offering best in class service at the higher end reminds us that AT&T remains...
View ArticleT-Mobile versus AT&T (cont): now we know why AT&T is concerned
T-Mobile US’s turnaround is well and truly confirmed. Late last night CEO announced their strongest subscriber quarter in EIGHT years. The 869,000 monthly subs added in Q4 not only came in 34% above...
View ArticleDTE GY/TMUS/S/T/VOD LN: Sprint bid round the corner for TMUS?
This week WSJ reported that Sprint has received proposals from at least two banks on how to finance takeover of T-Mobile US, giving confidence a deal could be funded. This comes after speculation over...
View ArticleVodafone: now cheap, add on weakness
Even without adjusting for the special dividend Vodafone is the second worst performing European Telco YTD. However, when you adjust today’s move for the payout (due next month) the stock is worst...
View ArticleAT&T: concerns remain
The impact of T Mobile’s aggressive market tactics were laid bare last night in AT&T’s numbers. A paltry 566k net subs was well below street estimates for 636k. Not only were they 35% below TMUS’s...
View ArticleT-Mobile USA: Worth a war? Rather bet on the 800lbs Gorilla
Given the strong run in TMUS, it still makes sense to book profits and wait for a better entry point especially if there is strength in the stock as M&A is still on many investors minds. There is a...
View ArticleVodafone: high price, but serves to highlight attraction of other Cable
After weeks of speculation and having increased the original suggested terms by 20%, Vodafone annouce intent to acquire Ono. €7.2BN is the price and statement “Claims” this is just 7.5x 2013 EBITDA....
View ArticleT-Mobile USA: Worth a war? Rather bet on the 800lbs Gorilla
Given the strong run in TMUS today (+~9%), it still makes sense to book profits and wait for a better entry point especially if there is strength in the stock as M&A is still on many investors...
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